The International Monetary Fund (IMF) affirmed in a recent report that while the challenges in Libya were “daunting”, economic activity could recover quickly once the security situation normalized in that country. The IMF said in its report that “restoration of hydrocarbon production is well-advanced at over half of prerevolution levels and remains critical to economic recovery and reconstruction will boost non-hydrocarbon economic activity.” It stressed that despite the removal of UN sanctions on the Central Bank of Libya, the public sector's financial situation remains “precarious." The IMF expects economic activity to recover in 2012 as the security situation improves.
Inflation in Saudi Arabia edged down to its lowest rate in four years in 2011 as lower rents and food prices more than offset a rise in other components of the CPI.
In Nigeria, the central bank may raise interest rates to curb inflation if lawmakers boost spending above budgeted targets and lift the benchmark oil price, according to the Bank’s Governor. He said Nigeria is facing a “number of inflationary threats” this year, including a reduction in fuel subsidies and higher government spending.